Yes Bank - Retail franchise build up continues on track - Emkay

Reco: HOLD
CMP: Rs 399
Target Price: Rs 440

- Yes Bank Q2FY13 NII at Rs5.2bn marginally ahead of estimates. However led by lower non-int income and stable provisioning, net profit at Rs3.06bn - was in line

- NIM (rep.) at 2.9% inched +10bps qoq aided by 30bps qoq decline in cost of funds. Rising share of CASA and benign wholesale deposit rates can aid margins in H2FY13

- Robust asset quality surprised with GNPA / NNPA down 6% / 15% qoq. Exposure to large media account outlined at Rs1.2bn of which Rs500mn already provided for

- Raising NII/PAT estimates for FY13/14E by ~3% and 10% each for FY13/14E. Stable execution of retail liab. and asset franchise gives conviction. Retain HOLD with TP of Rs440

Source : Equity Bulls

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